To support customers targeting a wide range of consumer applications
such as smartphone, tablet, wireless and digital home, UMC and ARM will
provide an advanced process technology and comprehensive physical IP
platform under this agreement.

"UMC's 'United for Excellence' approach includes unified collaboration
with our IP suppliers to deliver high-value design support solutions to
our foundry customer," said S. C. Chien, vice president, IP and Design
Support Division, UMC. "UMC's 28nm dual process roadmap includes both
poly SiON and High-K/Metal Gate based technologies. 28HLP is the foundry
industry's most competitive Poly SiON 28nm technology in terms of power
consumption, performance and area, with a robust design platform to help
expedite our mobile and communication customers' time-to-market. We are
excited to broaden our collaboration with ARM to further strengthen our
28HLP platform with ARM's highly popular POP IP core-hardening
acceleration technology."

The energy-efficient ARM Cortex®-A7 processor has seen broad adoption in
smartphones, tablets, DTV and other consumer products. The ARM POP IP
for the Cortex-A7 processor is targeted for 1.2GHz on UMC's 28HLP
platform, and delivery began in December 2013.

UMC's 28HLP process is the foundry's enhanced 28nm Poly-SiON technology
that provides an optimal balance of size, speed and power leakage. These
process characteristics makes the process the optimal choice for a
variety of applications that require low power consumption without
compromising performance, including portable, wireless LAN, and both
wired and handheld consumer products. The foundry is currently in pilot
production for customer products on 28HLP, with volume production
expected in early 2014.

"Through our close collaboration with UMC, ARM's physical IP and POP IP
enable optimal SoC implementation and streamline the design flow so that
our mutual customers can achieve world-class implementation and get to
market in the shortest time possible," said Dipesh Patel, executive vice
president and general manager, Physical Design Group, ARM. "Our standard
cells, next-generation memory compilers and POP IP deliver the features,
quality, and rigorous silicon validation that UMC's customers demand,
and help ARM deliver on our commitment to provide the best physical IP
platforms at leading foundries."

ARM's standard cell
libraries and memory compilers incorporate multi-channel and mixed Vt
features to enable a wide performance and power spectrum which utilizes
the performance and power range of UMC's leading-edge poly SiON process.
These features ensure that power budgets for performance-critical SoC
designs can be met.

About POP IPPOP IP
technology comprises three key elements necessary for optimized ARM
processor implementation. These include Artisan physical IP logic
libraries and memory instances tuned for a given ARM core and process
technology, comprehensive benchmarking reports pinpointing conditions
and results ARM achieved for core implementation, and detailed POP
implementation knowledge and methodologies that enable end customers to
achieve successful implementation quickly with minimized risk. POP IP
products are available from 40nm to 28nm with radmap down to FinFET
process technology for a wide range of Cortex-A series CPU and Mali™ GPU
products.

About UMCUMC (NYSE: UMC, TWSE: 2303)
is a leading global semiconductor foundry that provides advanced
technology and manufacturing for applications spanning every major
sector of the IC industry. UMC's robust foundry solutions allow chip
designers to leverage the company's leading-edge processes, which
include 28nm poly-SiON and gate-last High-K/Metal Gate technology, mixed
signal/RFCMOS, and a wide range of specialty technologies. Production is
supported through 10 wafer manufacturing facilities that include two
advanced 300mm fabs; Fab 12A in Taiwan and Singapore-based Fab 12i. Fab
12A consists of Phases 1-4 which are in production for customer products
down to 28nm. Construction is underway for Phases 5&6, with future plans
for Phases 7&8. The company employs over 15,000 people worldwide and has
offices in Taiwan, mainland China, Europe, Japan, Korea, Singapore, and
the United States. UMC can be found on the web at http://www.umc.com.

About
ARMARM designs the technology that is at the heart of advanced
digital products, from wireless, networking and consumer entertainment
solutions to imaging, automotive, security and storage devices. ARM's
comprehensive product offering includes RISC microprocessors, graphics
processors, video engines, enabling software, cell libraries, embedded
memories, high-speed connectivity products, peripherals and development
tools. Combined with comprehensive design services, training, support
and maintenance, and the company's broad Partner community, they provide
a total system solution that offers a fast, reliable path to market for
leading electronics companies. Find out more about ARM by following
these links:

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Some of the statements in the foregoing announcement are forward looking
within the meaning of the U.S. Federal Securities laws, including
statements about future outsourcing, wafer capacity, technologies,
business relationships and market conditions. Investors are cautioned
that actual events and results could differ materially from these
statements as a result of a variety of factors, including conditions in
the overall semiconductor market and economy; acceptance and demand for
products from UMC; and technological and development risks. Further
information concerning these risks is included in UMC's filings with the
U.S. SEC (News - Alert), including on Form F-1, F-3, F-6 and 20-F, each as amended.